Correlation Between Arkema SA and Kinetik Holdings
Can any of the company-specific risk be diversified away by investing in both Arkema SA and Kinetik Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Arkema SA and Kinetik Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arkema SA and Kinetik Holdings, you can compare the effects of market volatilities on Arkema SA and Kinetik Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Arkema SA with a short position of Kinetik Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkema SA and Kinetik Holdings.
Diversification Opportunities for Arkema SA and Kinetik Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arkema and Kinetik is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Arkema SA and Kinetik Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetik Holdings and Arkema SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Arkema SA are associated (or correlated) with Kinetik Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetik Holdings has no effect on the direction of Arkema SA i.e., Arkema SA and Kinetik Holdings go up and down completely randomly.
Pair Corralation between Arkema SA and Kinetik Holdings
If you would invest 4,420 in Kinetik Holdings on August 28, 2024 and sell it today you would earn a total of 1,496 from holding Kinetik Holdings or generate 33.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arkema SA vs. Kinetik Holdings
Performance |
| Timeline |
| Arkema SA |
| Kinetik Holdings |
Arkema SA and Kinetik Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkema SA and Kinetik Holdings
The main advantage of trading using opposite Arkema SA and Kinetik Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkema SA position performs unexpectedly, Kinetik Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kinetik Holdings will offset losses from the drop in Kinetik Holdings' long position.| Arkema SA vs. Kinetik Holdings | Arkema SA vs. JD Sports Fashion | Arkema SA vs. Hasbro Inc | Arkema SA vs. Playtika Holding Corp |
| Kinetik Holdings vs. Western Midstream Partners | Kinetik Holdings vs. DT Midstream | Kinetik Holdings vs. MPLX LP | Kinetik Holdings vs. Hess Midstream Partners |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |